Bank Of Japan Drops Rate In Effort To Boost Economy

OTHER NEWS TO NOTE - WORLD

September 8, 1995

TOKYO — The Bank of Japan cut its discount rate to a historic low of 0.5 percent today in a bid to stimulate Japan's flagging economy. The cut is effective immediately. It is the ninth reduction since June 1991, when the key rate was 6 percent. The bank last cut the rate - to 1 percent - on April 14. The discount rate is what the Japanese central bank charges its member banks for overnight loans. It influences all other interest rates in Japan.